{
  "title": "Greece: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece",
  "publication": "IMF Staff Country Reports, November 15, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/11/14/greece-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-48806",
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  "summary": "This 2019 Article IV Consultation with Greece discusses that public debt is projected to trend down over the next decade, though long-term sustainability is not assured under realistic macro-fiscal assumptions.",
  "sections": [
    {
      "heading": "Summary and key messages",
      "content": "- Public debt is projected to trend down over the next decade, though long-term sustainability is not assured under realistic macro-fiscal assumptions.\n- Still-weak bank balance sheets act as a drag on growth prospects and pose significant fiscal and financial stability risks.\n- Greece is vulnerable to a range of external and domestic shocks.\n- Improved living standards and economic convergence within the Euro Area (EA) depend on implementing a critical mass of inter-related fiscal, financial, and structural policy reforms.\n- Success within the currency union critically hinges on narrowing Greece’s structural competitiveness gap."
    },
    {
      "heading": "Growth and fiscal policy guidance",
      "content": "- Fiscal policy mix should be improved with:\n  - more emphasis on investment and targeted social spending,\n  - lower direct taxes,\n  - reforms in revenue administration and public financial management.\n- These fiscal adjustments aim to achieve better growth and social outcomes while addressing sustainability concerns."
    },
    {
      "heading": "Banking sector and financial stability",
      "content": "- Bank balance sheets remain weak and:\n  - act as a drag on growth prospects,\n  - pose significant fiscal and financial stability risks.\n- Addressing bank-sector weaknesses is essential to reduce macro-financial vulnerabilities."
    },
    {
      "heading": "Structural reforms and competitiveness",
      "content": "- Policies should focus on productivity enhancement through:\n  - improved labor market flexibility,\n  - more effective labor activation policies,\n  - stronger institutions,\n  - business deregulation.\n- Narrowing the structural competitiveness gap is identified as critical for Greece’s success in the Euro Area."
    },
    {
      "heading": "Vulnerabilities and outlook",
      "content": "- Greece remains exposed to external and domestic shocks due to:\n  - remaining fiscal risks tied to debt dynamics,\n  - weak financial-sector balance sheets,\n  - structural rigidities that limit convergence and productivity gains.\n\n---\n\n Content in this bundle\n\n- 1. Illustrative Scenario—Higher Reform Payoffs\n  - 1. Illustrative Scenario—Higher Reform Payoffs (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. Illustrative Scenario—Higher Reform Payoffs (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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    "[Markdown version](/en/publications/cr/issues/2019/11/14/greece-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-48806/index.md)",
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    "Published: November 15, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513520209.002",
    "Public debt is projected to trend down over the next decade, though long-term sustainability is not assured under realistic macro-fiscal assumptions.",
    "Still-weak bank balance sheets act as a drag on growth prospects and pose significant fiscal and financial stability risks.",
    "Greece is vulnerable to a range of external and domestic shocks.",
    "Improved living standards and economic convergence within the Euro Area (EA) depend on implementing a critical mass of inter-related fiscal, financial, and structural policy reforms.",
    "Success within the currency union critically hinges on narrowing Greece’s structural competitiveness gap.",
    "These fiscal adjustments aim to achieve better growth and social outcomes while addressing sustainability concerns.",
    "Bank balance sheets remain weak and:",
    "Addressing bank-sector weaknesses is essential to reduce macro-financial vulnerabilities.",
    "Policies should focus on productivity enhancement through:",
    "Narrowing the structural competitiveness gap is identified as critical for Greece’s success in the Euro Area.",
    "Greece remains exposed to external and domestic shocks due to:",
    "**1. Illustrative Scenario—Higher Reform Payoffs**"
  ],
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